KEY POINTS
- Competition between Dangote and NNPC (the state own company) makes petrol prices drop.
- The increased supply and reduced bulk purchase criteria helps marketers.
- Stabilizing prices further, more refineries will come online in 2025.
According to those informed, a rise in competition between Dangote Refinery and NNPC Limited recently led to a drop in petrol pump prices across Nigeria.
But such rivalry has led to a ‘price war’ between IPMAN and the filling station, which is good for consumers and independent marketers, the Independent Petroleum Marketers Association of Nigeria (IPMAN) stated.
Recent checks show substantial reduction in ex depot prices which has forced retailers to adjust their pump prices.
NNPC Retail for instance, cut its price by ₦65 per litre to ₦965; AA Rano and AYM Shafa, by ₦50 per litre, to ₦1,020 per litre. But Conoil retail prices remain fixed at ₦1,090 per litre.
Stabilization of supply is provided by local competition
IPMAN’s Public Relations Officer Chief Chinedu Ukadike, however, noted that rising competition and more product in the market played a good role. But the opposite is happening, he noted, ‘Usually, prices go up during this period because demand increases, but that’s reversed.’
He added, “The prices have stabilized due to the availability of petrol, and Dangote and NNPC have engaged in a beneficial price war.”
The ability of independent marketers to source products directly from the refineries has improved their turnover, Ukadike added. He said, “Independent marketers now have greater access to supply, are seeing better sales, and Dangote has lowered the bulk purchase eligibility from 10 million to 2 million liters.”
Outlook for 2025
Next year, the activation of the Warri and Kaduna refineries will further drive competition, to stabilize prices as well as improve supply. These developments offer the opportunity for more independent marketers, and relief for the consumers as well, said Ukadike.
